Customer BehaviorNike's core customers, who remain committed to the brand, are less willing to buy goods at full price.
Market PerformanceThe Athletic Footwear and Apparel sector saw market capitalization decline from $409B in CY21 to $281B currently (-31%), with the profit pool of public companies declining from $17B to $14B (-18%).
Sales And DemandRecent supplier checks keep us cautious on NKE's top-line turnaround efforts. Suppliers continue to see cuts to orders for key franchises that NKE is attempting to cull (i.e. AJ1, AF1, Dunk) as demand from retailers declines.